A Product Sells for $5, and Has Unit Variable Costs

question 5

Multiple Choice

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately

• A) 0.133
• B) 0.200
• C) 0.40
• D) 0.667
• E) $1.667

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Definitions:

Henry Ford

An American industrialist and founder of the Ford Motor Company, who revolutionized factory production with his assembly-line methods.

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Characterized by confident and forceful behavior or attitudes, especially in stating one's opinions or claiming one's rights.

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